TPG to invest up to $1bn in Africa with Satya

Jun 18, 2015, 3:01 PM EDT
Mo Ibrahim, founder of the Mo Ibrahim Foundation and founding chairman of Satya Capital Ltd., speaks during a forum on African energy and innovation at the Newseum in Washington, D.C., U.S., on Monday, Aug. 4, 2014.
Bloomberg/Bloomberg via Getty Images

U.S. firm TPG Capital and Sudan's Satya Capital are partnering up to invest up to $1 billion in African businesses, the companies said on Thursday. TPG is a newcomer to Africa while Satya's interests range from healthcare in Nigeria to manufacturing in Tanzania, writes Reuters. Satya will also make available an extra $300 million to $400 million for investment under the tie-up, owner Mo Ibrahim told Reuters.

"Actually it is much more than that because we will leverage this money as well," Ibrahim said in a telephone interview. "We are going to look at everything from $1 million to $200 or $300 million investments." The partnership is a special purpose vehicle called Satya-TPG, and the companies, in a joint statement, said it would focus on businesses in healthcare, information technology, consumer and financial services, among other sectors. "We know the good guys. We know the bad guys. We know which countries have rule of law. We know which countries don't have rule of law," Ibrahim said of Satya's role. Ibrahim said TPG's funds would come from its middle market platform, TPG Growth. William McGlashan, managing partner of TPG Growth, told the Financial Times, which first reported the partnership, that Africa is the last major market in which his company has not yet invested.

Business Day reports: For Bill McGlashan, founder and managing partner for TPG Growth, “We are thrilled to partner with Mo Ibrahim and Satya in Africa. Mo is a visionary leader, entrepreneur, and social activist who, along with Satya, are the perfect partners for TPG Growth’s integrated global team as we look for entrepreneurs and companies where we can be a unique partner in driving growth. Whether in San Francisco, Myanmar, or Nairobi – the companies we invest in all get the same operational support and focus. We don’t believe in local funds, but rather the marriage of the best in local and global, so it is very exciting for us to combine the capabilities of Mo Ibrahim and Satya with our global platform, and to be part of Mo’s vision for Africa.”

“The new African narrative is driven by a transitioning landscape with increasingly stable political climates, improving infrastructure, growing economic power, adoption of innovative technology and urbanisation. We look forward to working with TPG Growth to identify those business leaders doing exciting things in these sectors and innovating within them, and then partnering on a strategy – both local and global – to help them grow.” Says Tsega Gebreyes,  managing partner of Satya.